Norwich Union (NU) has come under fire for providing incorrect material in up to 30 pension quotes it issued to advisers.
The criticism comes as 30% of our sister title Professional Adviser's panel say they are dissatisfied with the standard of literature from insurers.
Adviser complaints to NU centre on incorrect quotes for increasing contributions to its executive pension plans.
The insurer sent two quotes to one adviser in the same day and another the following day, all containing inaccurate information.
One quote detailing the impact of deductions on the client's plan states: "This would have the same effect as bringing down the investment growth used from 6% a year down to 7.3% a year." A second quote advised the client investment growth would drop from 6% a year to 6.5% a year.
NU originally told the adviser the errors were a glitch on its computer system. However, he was also told the second quote was actuarially incorrect, whilst the first quote was in fact correct.
"It is mildly concerning that this has happened in the first place, however it is exceptionally worrying when the company tells you the quote is right," says Mike Inkley, director at Sanderson Law Pensions Management.
"After Norwich Union has taken its charge out, the return simply goes down," he points out.
Inkley says it is easy for advisers not to notice mistakes like these when checking quotes: "It is also impossible to calculate the sum ourselves because it is too complex," he adds, "If you find one error, you tend not to trust the rest of the quote and therefore cannot send it to the client because you are unsure if it is correct."
A spokesperson for Norwich Union says the company has identified a problem with its system which it hopes to fix quickly.
"There is a problem with the software - when you put in a certain value to the system it doesn't come out properly.
"It looks like the matter is affecting between 20 to 30 quotes, although this is difficult to know for certain," he explains.
"We are fixing this problem at the moment and hope that it will be sorted within the next couple of weeks.
"We are on the case and appreciate that on this occasion we have made a mistake," he says.
Norwich Union confirmed any adviser who has been affected by the problem will be receiving a revised quote within the next couple of weeks. They are also encouraging any adviser who identifies a problem to contact them.IFAonline
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